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Budget Bill for 2021: Working Sweden out of the crisis – together
Together we will work Sweden out of the crisis and build a more sustainable society. The Government is presenting the Budget Bill for 2021 to the Riksdag today. The Government proposes a powerful, green restart package for the Swedish economy, but also long-term reforms that will help solve societal problems. The proposals are based on an agreement between the government parties, the Centre Party and the Liberal Party.
The Government is presenting a historic, comprehensive budget to ensure that the climate transition will be accelerated, welfare strengthened, the business environment and competitiveness enhanced, vulnerable areas lifted, integration advanced, crime tackled, more money in people’s pockets and stronger urban-rural cohesion. Sweden will work its way out of the crisis and build a society that is better and more sustainable than before the pandemic.
Economic situation in Sweden is serious but fiscal scope is considerable
Indicators suggest that the Swedish economy bottomed out in the spring; it is expected to recover in the second half of 2020, just like the global economy in general. The Government assesses, however, that it will be several years before the recession is over. But Sweden is in a good position to manage the recession, thanks to its low level of public debt.
The recession – but also the Government’s measures – mean that public finances are expected to weaken significantly in 2020 and 2021. At the same time, an expansionary fiscal policy will help to stimulate the economy and accelerate the recovery, which over time will lead to stronger finances again.
Reforms worth more than SEK 100 billion
The Government therefore proposes extensive fiscal policy stimulus measures and reforms worth more than SEK 105 billion for 2021 and more than SEK 85 billion for 2022. Funds from the EU Recovery Fund are expected to contribute to the financing.
A powerful and green economic restart
A temporary expansionary fiscal policy is needed to pull Sweden out of the recession as quickly as possible and get people into work again. The Government therefore proposes green investments, extra resources to welfare and tax reductions on labour and enterprise. In addition, opportunities for employment transition will improve for those who need or want to transition. The measures will contribute to accelerating the climate transition, supporting the recovery and increasing employment throughout the country.
A stronger Sweden after the crisis
In addition to pandemic responses, new proposals are being presented for a long-term approach to societal challenges. Unemployment, climate change, growing welfare needs, the urban-rural gap, lack of integration, learning outcomes in schools and crime will be addressed through continued reform efforts.
Press Secretary to the Minister for Finance Magdalena Andersson
Phone (switchboard) +46 8 405 10 00
Mobile +46 73 086 32 01
email to Johan Ekström